China intends to reduce steel production to tackle overcapacity and declining profits, as outlined by the National Development and Reform Commission. The move comes in response to decreased domestic demand due to a struggling real estate market and rising tariffs from major trade partners.

China has announced plans to reduce its steel production to combat significant overcapacity and diminishing profits within the industry. As the leading global steel producer, with over one billion tons manufactured in 2024, the nation aims to restructure its steel sector by implementing output reductions starting in 2025, according to the official report from the National Development and Reform Commission (NDRC).

In summary, China’s decision to reduce steel output addresses both overcapacity and falling profits amid a declining real estate market. With external pressures from tariffs imposed by several countries, including the United States and India, this strategic shift is aimed at stabilizing the steel industry and meeting environmental targets.

Original Source: www.hurriyetdailynews.com

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